All Forum Posts by: Mark S.

So here is something interesting for you landlords out there. I learned that in Germany (and possibly other EU countries) the tenant supplies his/her own kitchen -all appliances, cabinets, countertops, etc. When the tenant moves, they take it out or try to sell it to the next tenant. And landlords often want very long leases, sometimes 5 years or more(which tenants may want as well if they are supplying their kitchen). Sounds crazy from our perspective here.

@Jameson Hooton It’s not a dumb question at all. It’s relevance really depends on what type of real estate work you do. 1) If you are a realtor, you can get a good idea of how much time you put in during an average week and figure out what you make. Certainly worth having an idea on that. 2) If you are a flipper, of course you should have some idea on the time you invested and what your net (after ALL expenses, including FICA, are) and what you made. I recently went through that exercise to determine whether I should be subbing out more work (I should!). 3) PMs probably know their hours and income.

With buy and hold it gets more challenging, and as some pointed out it is more about building net worth or income streams than it is about what you make for the time you put in right now.

That’s my perspective, having been involved in RE in all these avenues.

@Amanda Berry A good tenant is money in the bank - literally. As some suggested, I would not offer to reduce the rent but would agree verbally (not in writing) that if all monthly payments are on time and there are no issues the rent will not increase in year two. I do not increase rents for solid, low maintenance long-term tenants every year. I may adjust them every few years if my expenses go up and I fall noticeably behind the market but I subscribe to what Jay mentioned - vacancys, late payments, damages cost a lot more and are a much bigger headache than being a few bucks low on rent but keeping good tenants in place. I like things as easy as possible on that front since I self manage.

@Syed H. I guess it depends on your tenants. Don’t get me wrong - I prefer tile, laminate or hardwood over carpet. But there are times and places where carpet ends up being the right choice. And I guess the life span depends on the quality of tenants. I have yet to have to replace carpet as soon as you say, but I have a few what I guess would be ‘’A’ class Properties with tenants who are long term.

@Jennifer Darby I just had a small house carpeted -living/family room, hall, den, 2 bedrooms, 2 stairs with Gemini 1 from Home

Depot for $2400. It is nice stuff. The floor was pretty uneven since it is a 95 year old house and carpet seemed like a good solution. Easy, cheap, looks good and if I decide to replace some

of it in a few years I won’t feel like I wasted money. I do a couple complete reno’s a year and always use HD for my carpet.

Just be aware that some places do not allow laminate or other hard surface flooring on upper levels (above main floor) due to noise, other than bathrooms and kitchens. We use the less expensive plush from Home Depot in our bedrooms. In Minnesota people seem to

really appreciate carpet in bedrooms because of the cold and the carpet we get at Home Depot it’s cheap enough that if you have to replace every few years it’s no big deal.

@Jim K. Well my approach is to do everything right so I can sell with a clear conscience. The thought of selling a house to a family who is excited to finally have their own place, only to find out two or three or four years later that they have problems that they can’t afford to fix, it’s not a thought I ever want to have in my mind.

I have been investing in the Twin Cities area for the past four years or so. Been doing about two properties a year – all renovations, about half retained as rentals and a half sold. My focus has been single-family homes with a few high-end condos/townhouses thrown in.Would like to do more but as others mentioned the market here is extremely difficult. You can occasionally find something on the MLS but have to hit it just right or jump on it immediately if it looks good. And by immediately I mean within hours of being listed. Doesn't help that Open Door has entered this market. Your best bet is to get some really good connections with realtors who can bring you off market deals when they learn of them. Of course, those realtors are being hammered by a lot of people like us that want the same thing.

We have been using IKEA for years in most of our renovations. The exception is the real low end (under 200k) where we go with box cabinets from Home Depot. Quite frankly, I have been in some $500,000 plus model homes whose box cabinets are of a poorer quality that IKEA. With IKEA you get soft close drawers, a tenant – resistant finish, and tremendous flexibility in customizing. And once you’ve been through a few, they are actually quite easy to assemble. Plus no waiting for additional pieces or changes (if you have a store nearby).

@Jassem A. Wow - a 1x6 wood backsplash! That’s a first. Does anyone comment on them? We usually just plain white 3x6 subway tile. Incredibly inexpensive and easy, and people love it.